In case it's useful, I wrote something similar on option pricing recently: https://norswap.com/options/ (ctrl+f to "option greeks" if you're just interested in that). It has a bit more examples, and a bit less scary formulas than the present post. It also has less awesome details on the Black-Schole model (you can't have everything!)
In case it's useful, I wrote something similar on option pricing recently: https://norswap.com/options/ (ctrl+f to "option greeks" if you're just interested in that). It has a bit more examples, and a bit less scary formulas than the present post. It also has less awesome details on the Black-Schole model (you can't have everything!)
Delta N(d1) is definitely not the probability to be in-the-money. That is N(d2).
Great explanation. Two charities as suggestions: Force Blue and Big Brothers Big Sisters International
This is awesome